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Fidelity to Launch Female-Focused SMA

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(Photo: AP)

Fidelity Investments plans to roll out separately managed accounts for advisors in early 2020 with five equity SMA models, including one emphasizing investments in firms with female leaders. The Fidelity Advisor SMAs will be available via broker-dealers, RIAs and managed-account platforms. 

The five SMA models to be launched by Fidelity, based on the firm’s existing mutual fund and institutional strategies, are:

  • FA International Capital Appreciation SMA 
  • FA Growth Opportunities SMA 
  • FA Founders SMA 
  • FA Small Company SMA 
  • FA Women’s Leadership SMA

“The Women’s Leadership SMA is designed to deliver returns with a purpose and allow advisors to engage their clients in conversations about values and the legacy they want to leave for future generations,” said Nicole Connolly, portfolio manager and head of ESG investing for Fidelity, in a statement.

“These types of discussions can help advisors build deeper relationships with their clients and engage the entire family in the investment dialogue,” Connolly added.

SMAs now account for almost half of assets in unified managed accounts, which were about $994 billion in 2018, according to Cerulli Associates. The research group expects UMAs to nearly double by 2022 to an estimated $1.85 trillion.

“Advisors can use SMAs to create personalized investment strategies for their clients that can complement existing holdings or apply tax-efficient techniques,” according to Judy Marlinski, president, Fidelity Institutional Asset Management. 

Fidelity’s recent SMA announcement comes about two months after UBS said it would drop fees on more SMAs offered by its financial advisors. And in November, asset manager Putnam Investments launched seven equity model-based SMAs and said it intends to add multi-asset model portfolios by year-end.


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